Risk Disclosure
Important information about trading risks
IMPORTANT RISK WARNING
Margin trading involves substantial risk and may not be suitable for all investors. You may lose part or all of your initial investment.
1. General Risk Warning
Trading in financial markets involves substantial risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite.
You could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
2. Margin Trading Risks
Leverage Risk: Margin trading allows you to control large positions with relatively small amounts of capital. While this can amplify profits, it also amplifies losses. A small adverse market movement can result in significant losses.
- You may lose more than your initial deposit
- Market movements can be rapid and unpredictable
- Leverage increases both potential gains and potential losses
- You may be required to deposit additional funds to maintain positions
3. Market Risks
Price Volatility: Financial markets can be highly volatile, with prices moving rapidly and unpredictably. This volatility can result in significant losses.
- Market prices can move against your positions
- Gaps in pricing may occur, especially during market closures
- Economic and political events can cause sudden price movements
- Liquidity may be limited in certain market conditions
4. Liquidity Risks
Market Liquidity: Some financial instruments may have limited liquidity, which can make it difficult to enter or exit positions at desired prices.
- You may not be able to close positions at favorable prices
- Wide spreads may increase trading costs
- Market makers may not always provide quotes
- During volatile periods, liquidity may be significantly reduced
5. Technical Risks
Platform and Technology: Trading through electronic platforms involves various technical risks that could affect your ability to trade.
- System failures or delays may prevent order execution
- Internet connectivity issues can disrupt trading
- Price feeds may be delayed or inaccurate
- Orders may be executed at prices different from expected
- Platform maintenance may temporarily suspend trading
6. Regulatory and Legal Risks
Regulatory Changes: Changes in laws, regulations, or policies can affect trading conditions and your ability to trade certain instruments.
- New regulations may restrict certain trading activities
- Tax laws may change, affecting your trading profits
- Regulatory authorities may impose trading restrictions
- Legal disputes may affect your trading account
7. Currency Risks
Exchange Rate Fluctuations: If you trade in currencies other than your base currency, exchange rate movements can affect your profits and losses.
- Currency appreciation or depreciation can impact returns
- Conversion costs may reduce profits
- Exchange rate volatility can increase overall risk
- Central bank policies can significantly affect currency values
8. Counterparty Risks
Broker Risk: When trading through a broker, you are exposed to the financial stability and operational risks of that broker.
- The broker may become insolvent or cease operations
- Your funds may be at risk if the broker fails
- Disputes with the broker may affect your trading
- Regulatory actions against the broker may impact your account
9. Psychological Risks
Emotional Trading: Trading can be emotionally challenging and may lead to poor decision-making.
- Fear and greed can cloud judgment
- Losses may lead to emotional distress
- Overconfidence can result in excessive risk-taking
- Stress can affect trading performance
10. Risk Management Recommendations
To help manage these risks, we recommend:
- Never invest more than you can afford to lose
- Use stop-loss orders to limit potential losses
- Diversify your trading portfolio
- Maintain adequate margin levels
- Monitor your positions regularly
- Keep detailed records of all trades
- Seek professional financial advice if needed
- Stay informed about market conditions and news
11. Past Performance
Past performance is not indicative of future results. Historical data and performance figures should not be relied upon as a guide to future performance. The value of investments can go down as well as up, and you may not get back the amount you originally invested.
12. Professional Advice
This risk disclosure does not constitute investment advice. We strongly recommend that you:
- Consult with a qualified financial advisor before trading
- Understand the products you are trading
- Consider your personal financial situation
- Be aware of all applicable taxes and regulations
13. Contact Information
If you have any questions about the risks associated with trading, please contact us:
Email: compliance@jrglobals.com
Phone: +852 3069 7835
Address: Room 5, 1/F, Rise Commercial Building, 5-11 Granville Road, Tsim Sha Tsui, Kowloon, Hong Kong
Last Updated: January 2025